I don’t think a flat tax is a winning idea.
“Illinois already has a flat income tax of 4.95%”
And a sales tax of 7.75-over 10% depending on where you live and some of the highest property taxes in the nation and a gas tax of 56 cents a gallon plus local gas taxes depending on where you live.
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I remember that in the 1960’s Wisconsin had the most generous AFDC (Aid to Families with Dependent Children) programs.
The local paper reported people moving from Minnesota and Illinois to receive the more generous benefits.
For me the only truly fair flat tax (on the philosphical position that EVERYONE pays, and pays the same flat tax), must include the following points:
1. It’s universal - it applies everyone.
2. No deductions, no exemptions, no exlcusions, not “tax credits - ALL income regardless of source or manner of earning it is taxed the same and not left out in any way.
3. With one possible caveat that politicians can consider, and will likely help get the measure passed, and that one be one single income floor below which income is not taxed.
4. Whether a bank paying interest, or a bond paying interest, or a stock paying dividends, or an employer paying wages/salery/earnings of any manner, or a business paying a consultant, or an individual paying somone for services, ect., ect., ect., the flat tax would be deducted from the payment and sent in with a 1099.
5. There would be no “refunds” because all the gimmicks (deductions, exemptions, exclusions and credits will be eliminated. There will be nothing to to before an “April 15th deadline. All the taxes due will have been taken - nothing to report, nothing to get back.
6. If all of the above were implemented most people would see a lower level of taxes paid, because with all gimmicks eliminated the flat tax will be as totally broad as possible (hitting EVERYONE and hittting EVERYONE the same) and likely lower than any tax rate now being applied.
Join Texas, Florida, Washington et al with no state income tax.